594 PROCEEDINGS OF SECTION F. 



Later on the sterling money was expressed in " Spanish 

 dollars at 5s. each." 



Some notes were merely written, and others again — those 

 issued by the larger business firms — were printed from copper 

 plates in red ink, and were very creditable specimens of the 

 engraver's art, the size of the note being somewhat similar 

 to the bank notes of to-day. 



Not only traders, but colonists generally, issued these 

 currency notes ; and from being a means of alleviating the 

 inconvenience felt from the absence of a sufficiency of sterling 

 money, their lavish issue finally became the cause of enlarging 

 the difference between sterhng and currency to such an alarm- 

 ing extent, that as early as January, 1813, the difference 

 amounted on one occasion to 75 per cent. 



The Sydney 6ra^e«e of 27th January, 1813 states:— "The 

 scarcity in sterling money becomes every day more obvious, 

 and its consequent rise in price reduces the currency to little 

 more than one-half its nominal value. From the warehouses 

 the generality of traders are supplied, the major part on 

 credit ; and they have their customers, whom they are obliged 

 to credit likewise. The purchaser from the importer is 

 required to make his payments all in sterling, and mostly sells 

 for sterling money to the dealers, who, upon the contrary, 

 are obliged to sell for currency, which must be converted into 

 sterling before they can supply themselves afresh. Upon 

 this numerous class must therefore fall the weight of the 

 inconvenience. A difference of fifteen shillings in the pound 

 has been the present week demanded, and no article laid in 

 at the market price of the day can afford the difference ; and 

 the issuers of currency bills will find their safety and 

 advantage in giving out no more." 



Although the actual scarcity of sterhng money doubtless 

 had the effect of depreciating the value of paper currency, 

 there were other causes for such depreciation. As I before 

 remarked, everybody issued his notes as a matter of course, 

 and the ease with which a note could be placed in circulation 

 induced many unstable persons to float their paper, which, 

 of course, was dishonoured on presentation. The risk in- 

 volved by their presentation, therefore, was often the cause 

 of doubtful notes being kept afloat, and becoming more and 

 more depreciated in value. 



Again, the blank printed forms being readily obtainable 

 at the Gazette or other printing establishments, there was 

 nothing easier than for rogues to purchase a quantity of 



